A sole proprietorship is an unincorporated business that is owned by one individual. It is the simplest form of business organization to start and maintain. The business has no existence apart from you, the owner. Its liabilities are your personal liabilities and you undertake the risks of the business for all assets owned, whether or not used in the business. You include the income and expenses of the business on your own tax return.
More Information
For more information on sole proprietorships, see Publication 334,
Tax Guide for Small
Business. If you are a farmer, see Publication 225,
Farmer's Tax Guide.
Partnerships | Corporations | S Corporations | Limited Liability Companies
Information courtesy of the Internal Revenue Service.
